Consumer and Retail M&AExecutive Report 2016

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Valuations and liquidity thatdrove the “frothy” 2015seller’s market are giving wayto a more balanced market.

Consumer and Retail M&A

#RetailLostM&AFroth

The growing spreadbetween investment-grade and high-yieldfinancing will createa split in consumer-retail M&A.

Consumer and Retail M&A

#RetailLostM&AFroth

75 percent of U.S. and Europeanexecutives in the survey projectM&A activity levels at the sameor better than 2015.

Consumer and Retail M&A

#RetailLostM&AFroth

Consumer and Retail M&A

Smaller andrelatively riskierdeals in 2016 will face financing challenges andmay fail to be realized.

#RetailLostM&AFroth

Five strategic insightson consumer andretail M&A in 2016:1. Consolidation remains critical2. Wanted: new paths to growth3. Capital heads west4. Big bets on India5. PE firms face challenges

Consumer and Retail M&A

#RetailLostM&AFroth

Strategic Insight #1Established firms will continueto harness consolidation to improvetheir bottom lines.

Consumer and Retail M&A

#RetailLostM&AFroth

Strategic Insight #2M&A focus on target companieswith disruptive digital capabilitieswill drive growth and profitability.

Consumer and Retail M&A

#RetailLostM&AFroth

Strategic Insight #3Ongoing struggles of majorAsian economies haverenewed investmentinterest in theUnited Statesand otherWestern markets.

Consumer and Retail M&A

#RetailLostM&AFroth

Strategic Insight #468 percent of surveyrespondents havea positive outlookon M&A activityin India.

Consumer and Retail M&A

#RetailLostM&AFroth

Strategic Insight #5PE firms that buysmaller, riskierbusinesses willfind it challengingto finance andcomplete deals.

Consumer and Retail M&A

#RetailLostM&AFroth

For more information about A.T. Kearney’s approach toConsumer and Retail M&A,please visit: www.atkearney.com/consumer-products-retail/cirp-ma-executive-report

#RetailLostM&AFroth